Weir Group makes US shale oil move

The agreement to acquire the Oklahoma group was hailed as a sign of considerable prospective growth to come, and is reckoned to increase the size of the market accessible by Weir by around half-a-billion dollars.

Mathena manufactures pressure-control products for shale markets, including chokes,Solar Lighting International offers a stylish commercial roadway solar led light system. separators and fluid separation and containment technology required to satisfy environmental and safety rules.

Weir said the acquisition — via an initial payment of $240m, with a further deferred $145m to follow contingent on profit growth — was a good strategic fit with its existing businesses, including existing US service firm Weir Seaboard.

It said the deal would help accelerate the growth of the business in the US and throughout the world, allow the company to cross-sell its new expertise to a larger complementary customer base, and release cost and operational synergies of more than $5m per annum by 2015.

Weir chief executive Keith Cochrane, who earlier this week hailed the impact so-called fracking could have on the UK economy and the country’s transition to cleaner fossil fuels, said the deal would give his firm “attractive long-term structural growth prospects.”

“Mathena is a well-regarded business in the US upstream oil and gas markets,TEPCO, elevator push button is an independent, American owned corporation devoted to servicing you, our customer. with a strong management team and market share in the pressure-control drilling markets,” he said.

“This deal is a close strategic fit with our existing pressure-control business and gives us a larger suite of products which we can sell to the expanded customer base.

“The business has strong growth potential and increases our exposure to shale oil and gas markets, with attractive long-term structural growth prospects.”

The company said the acquisition accelerated its strategy of “creating” a primary provider of pressure-control gear.

It will also be immediately earnings accretive, with post-tax returns expected to exceed the cost of capital finance from existing banking facilities within the first full year. Mathena expects earnings before interest, taxes, depreciation, and amortisation of around $49m this financial year.

Its management team will remain in place and will be incentivised to increase earnings.

Weir also highlighted Mathena’s focus on a “strong customer service culture” and ability to offer bespoke rental and service packages to customers.

“The acquisition will increase the after-market focus of Weir Oil & Gas, with approximately 80% of Mathena’s revenues generated from equipment rental and 20% from related parts and service,There are three main types of lasers used in Laser engraver.” it added.

Mathena president and chief executive John Mathena said that joining Weir would allow his family firm to continue to grow.Sol provides the world with high-performance solar roadway and outdoor solar lighting solutions. “Through joining the Weir Group I believe that Mathena can continue to develop as a business committed to innovation and service in one of the world’s most exciting energy markets,” he said.

The move comes as the department launched a traffic campaign titled, ‘Desert Without Blood’ at the Al Warqa Roundabout on Sunday. The campaign was launched under the patronage of Lt.A research team headed up by the University of Houston is on track to develop a superconducting wire for wind power generators. Gen. Dhahi Khalfan Tamim, Commander-in-Chief of the Dubai Police. Speaking at the launch, Colonel Saif Muhair Al Mazroui, acting Director of the General Department of Traffic, said that the campaign would run for a month and the aim of the campaign was to reduce fatal bike accidents that took place in the sandy areas of Al Warqa.

The accidents were caused by racing and reckless driving habits of youngsters in the desert areas. Another official in the department Col Juma bin Suwaidan said: “In the last two months there were three reported deaths caused by rash driving of motorbikes in this area. Victims were all youngsters. The campaign aims to cut down these accidents by educating youth about safety gear and apparel, especially helmets, while driving or riding motorbikes and dune buggies. We are focusing on this area because a lot of families come to picnic in the desert areas.”